38
State manufacturing import sensitivity =
∑
∑
=
=
⎟
⎟
⎟
⎠
⎞
⎜
⎜
⎜
⎝
⎛
∗
J
j
j
j
J
j
ij
ij
i
mi
S
I
S
S
Y
Y
1
1
Two aspects of these indices are worth noting. First, each sector's share of
manufacturing in the state was determined by its share of total shipments from all
manufacturing sectors, rather than its share of personal income in manufacturing, because
shipments were used to measure export orientation and import sensitivity. Second, the
weighted sum of sectoral export and import shares is adjusted for the size of the
manufacturing sector in each state using personal income data because personal income
was the only consistently available indicator of the total size of the state economy. This
makes sense politically, because even a very export-oriented manufacturing sector may
be politically unimportant if it constitutes only a small share of overall economic activity.
The index indicates the impact of manufactured exports and imports on the economy of
the state as a whole.
Similarly, agricultural export orientation and import sensitivity were computed for
each state as follows. In this case, C indicates agricultural cash receipts, agricultural
commodities are subscripted with k, and agriculture as a whole with a:
State agricultural export orientation =
∑
∑
=
=
⎟
⎟
⎠
⎞
⎜
⎜
⎝
⎛
∗
K
k
k
k
K
k
ik
ik
i
ai
C
E
C
C
Y
Y
1
1
State agricultural import sensitivity =
∑
∑
=
=
⎟
⎟
⎠
⎞
⎜
⎜
⎝
⎛
∗
K
k
k
k
K
k
ik
ik
i
ai
C
I
C
C
Y
Y
1
1
As the equations indicate, the sum of imports as a share of cash receipts over all the
major commodity groups was weighted by that commodity's share of cash receipts for the
included commodity groups rather by its share of all agricultural cash receipts. While
Convention